RBC Capital lifts Hikma price target, reiterates ‘outperform’

RBC Capital Markets lifted its price target on Hikma Pharmaceuticals on Wednesday to 2,050p from 1,950p as it reiterated its ‘outperform’ rating.

The bank noted that price erosion is moderating in the US generics market largely due to improving supply side dynamics.

"As a result Hikma has raised guidance for the generics division to close to 20% revenue growth from low double digits.

"However, exchange rates in the MENA region have deteriorated further (particularly Egypt) which will negatively impact the branded division.

"We update our model for improved pricing in generics and latest exchange rates in MENA, resulting in modest forecast changes."

At 1255 BST, the shares were up 2.3% at 1,873.50p.